O 12/9/2015 11:00 PM A 30/100 12/6/2015 09:09 AM Grade book Print Calculator Que

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O 12/9/2015 11:00 PM A 30/100 12/6/2015 09:09 AM Grade book Print Calculator Question 3 of 15 Map pling The graph to the right shows the Marginal Cost (MC), Average Total Cost (ATC), and Marginal Revenue (MR) curves for a perfectly (or purely Competitive firm. Note, for such firms, the Demand (D) curve is the same as the MR curve. Answer the below two questions, specifying to at least one decimal place. What price should this firm charge to maximize profit? Number ATC MC/MR MR. How many units should this firm produce to maximize profit? Number MC 10.2 12 16 Quantity O Previous Check Answer Next Ext Hint

Explanation / Answer

Price is 12 and quantity is also 12. At 12 units MR=MC and the ATC curve is below the equilibrium point. That means that the firm will be earning positive economic profits.

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